Exxon, Shell, BP fighting over fuel prices? No. I said, giants Saudi Arabia, Iran and the rest of OPEC are fighting over increase production should happen. More crude oil produced should make way for lower diesel fuel prices and gas prices.
Normally, what happens at an OPEC meeting from a standpoint of increasing or decreasing oil production is predetermined before the meetings even begin. The members of OPEC decides a few days before the meeting. That wasn’t the case this week and it could have huge effects in the future when it comes to your fuel management of diesel fuel prices and gas costs.
Saudi Arabia the worlds largest producer was all for an increase in production fearing higher diesel fuel prices and gas costs on the West (US) would have a negative effective on the worlds economic recovery. Some of our favorite countries please excuse the sarcasm Iran, Libya, Venezuela to name a few don’t feel the same way. The main reason is the only OPEC country that really increase production is Saudi Arabia.
They already produce 10 million barrels a day, which is around 40% of all OPEC oil. OPEC as a group produces 42% of the worlds oil. So how much spare oil can the Saudis produce about 3.2 million barrels a day, more than 3 times the amount of all other OPEC countries combined.
The big question that will effect you fuel management and fleet management solutions is will the Saudi raise production even though the other members of OPEC voted not to?
I believe they will. Will it lower our fleet fueling prices? I am not as sure about lower fuel prices as I was just days ago. The speculators can’t seem to give up on $100 plus crude oil.
As with everything in life things change all of the time. You might want to be selective to where you use your fleet cards when pumping.